CCI launches probe into cotton sales in Andhra Pradesh

GUNTUR: The Cotton Corporation of India (CCI) has launched an investigation into allegations about irregularities in purchase of cotton from farmers.
A team of vigilance officials from Cotton Corporation of India’s New Delhi office are visiting cotton purchase centres in the district and inspecting the records. Sources said the vigilance team has unearthed irregularities by field staff and is looking at the possible role of senior officials.The CBI had booked criminal cases against a few senior officers two years ago.
Sources said the CCI and marketing department officials had connived with ginning millers to procure stocks from unauthorized purchase centres by rejecting farmers’ stocks. With the CCI officials refusing to procure the stocks citing technical reasons and procurement norms, farmers were selling their stock to middlemen at throwaway prices. The middlemen sell the same stock to the ginning mills who in turn offer it to the CCI. The CCI officials, however, have completed purchase in the name of farmers to pay higher sums.
While middlemen and ginning mills buy cotton from farmers between Rs 3,500-Rs 4,000 per quintal, the Cotton Corporation of India is purchasing it between Rs 5000-Rs 5550 per quintal, the minimum support price (MSP) fixed by the Centre.
Sources allege that middlemen and officials are pocketing nearly Rs 1,500-Rs 1,600 per quintal. Curiously traders bought stocks at Rs 6,000 per quintal, above the MSP, as fresh crop arrived in the market in December. The prices then dipped below MSP resulting in distress sale by farmers.
The fall in prices in the open market is believed to be the result of a conspiracy by middlemen, ginning millers and officials. Traders stopped buying from farmers by the time the peak procurement season commenced in the first week of January.
Although the farmers rushed to the CCI purchase centres, they could not sell the stocks due to several hurdles including failure to get e-crop booking certificate, high moisture level and length of the lintel.
Taking this distress among the farmers to their advantage, middlemen bought stocks below Rs 4000 per quintal and sold the same to the Cotton Corporation of India at MSP with nearly Rs 1,500 profit. “Our officials will ensure quality of the stock. It is the responsibility of the marketing department to give us the list of genuine farmers. We are here to support the farmers,” said Cotton Corporation of India general manager K Maheswara Reddy.